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Dialog Semi Seeks Delisting

The company cites regulatory burdens.

German chipmaker

Dialog Semiconductor


will seek to delist its shares from the


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, citing the increasing regulatory burdens of listing on the exchange.

Dialog, which makes power management chips, said the primary market for its shares has always been in Frankfurt, Germany, where it intends its ordinary shares to be solely traded for the near-to-medium term. Shuttering its U.S. listing of its Alternative Depository Receipts will allow the company to focus its communications efforts on its "key" German market.

The company said it intends to terminate its ADR program with the Bank of New York and seek a delisting from Nasdaq, which it expects to occur on Dec. 28.

Subsequently, any ordinary shares not previously withdrawn from the ADR program will be sold in the market by the ADR Depository, with the net proceeds distributed to the holders of those ordinary shares.

"The increasing regulatory burden of Nasdaq, both in terms of third party legal and accounting costs and more importantly, management resources, have not for some time been matched by a corresponding benefit from the Nasdaq listing, where ADR trading is light," said Dialog CEO Jalal Bagherli in a statement.

Dialog's stock, which has an average daily trading volume of roughly 5,000 shares, was down 4.3% to $1.34 in midday trading Thursday.